What is liquid capital & illiquid capital?

Liquid capital consists of the money or convertible assets that are readily available to you, allowing you to live with economic security in the face of any monetary or stock crisis. What is liquid capital (and illiquid capital)? How do you acquire it? And how can liquid capital be of value in your life or business? What is Liquid Capital?

What are the different types of liquid capital?

In addition to cash, there are many different forms of liquid capital that you can contribute to your overall fluid assets. These include: Banking accounts: Savings and checking accounts that include cash funds, as well as money-market accounts (investment-based savings accounts).

What is non-liquid capital?

Non-liquid assets, or illiquid assets, are types of assets that cannot be easily converted into cash within a short period of time. These assets may include things like real estate, businesses, and physical assets such as equipment and machinery.

What are examples of liquid assets?

Examples of liquid assets may include cash, cash equivalents, money market accounts, marketable securities, short-term bonds, or accounts receivable. A liquid asset is cash on hand or an asset that can be easily converted to cash. In terms of liquidity, cash is supreme since cash as legal tender is the ultimate goal.